Gazprom Offer Attractive: Analysts

It seems likely it will go well. Gazprom should be accepted by a much wider audience of investors than the usual Russian stock, said a senior fund manager based in London.

The 23.7 million American Depositary Shares (ADS) on offer in this landmark Russia deal each represent 10 common shares, and the size of the issue could be increased to 27.255 million ADS if demand is sufficient, lead managers Morgan Stanley and Dresdner Kleinwort Benson said.

This would allow Gazprom to raise up to $436 million.

Foreign investors are being asked to stump up more than four times the 33.5 cents Russians pay for Gazproms underying shares for a dollar denominated security which avoids direct exposure to the rouble hassles of directly owning a Russian share.

 

There is an additional incentive as despite being the largest company in Russia, it is one of the most thinly traded on the Moscow bourse as Gazprom imposes restrictions on trading.